Malaysia LAH

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Thursday, 11 April 2013

KL hotel fuses privacy and communalism


KL hotel fuses privacy and communalism

By Joy Lee
Photos by Brian Moh
A new hotel buzz: (from left) Teoh, lee and
Choong believe Grid 9 is unique enough to do
well in the market.
While hotels and hostels may be familiar accommodation options for the frequent traveller, a hybrid of the two is a new concept that has been introduced to the local hospitality scene by Kenny Choong and his partners Teoh Jun Jie and Jonathan Lee.
Choong said he was inspired to open Grid 9 during his travels in the US.
According to him, the concept of their hotel on Jalan Maharajalela, Kuala Lumpur, is fairly common in the US as American guests appreciate the privacy and luxury of a hotel room, but also like having a common area where they could hang out and socialise with other guests.
“We found that places like this are lacking here. We saw a gap in the market, went for it, and the rest is history,” said Choong.
Grid 9 opened its doors to the public roughly four weeks ago and Choong said things have been going well so far.
The hotel can accommodate a total of 120 guests at any one time. Grid 9’s occupancy rate over the weekends runs at 100% on average and about 50% to 60% on weekdays.
Choong also pointed out that they received positive reviews in their first three weeks.
Grid 9 is perhaps one of the few hotels in Malaysia with a focused target group as the concept and layout of the hotel appeals mainly to young adults aged 18 to 35 years old.
“This age group is our target market and generally everything is done to reach this group. It is a concept that caters to young travellers’ culture and lifestyle,” Choong said.
The common area is equipped with iPads, an LED TV, and WiFi for travellers to stay connected and is littered with Doof beanbags, a pool table and a collection of board games for guests to dive into and make friends along the way.
Cool hangout area: Grid 9 has a common area littered with doof bags where guests can socialise at ease.
Choong did marketing and consultancy work for Philip Morris and PriceWaterhouseCoopers (PWC) before embarking on his dream to start something on his own about one and a half years ago.
Armed with no experience in construction or hospitality, Choong decided to take on every part of the project on his own to learn things on the job.
Just opened:The new Grid 9 hotel.
This included overseeing renovation works, applying for licences and marketing the Grid 9 concept.
Having spent most of his working years in an office, switching over to the role of site manager was no easy task for Choong.
However, he insisted on being the main contractor for the project so that he could look into all the nitty gritty details of the renovation works and ensure that quality materials were used.
“I am new at this so I had to learn every process as much as I could so that we could replicate this elsewhere when we want to expand.
“Finding out simple things like knowing the diameter of pipes to use made a lot of difference,” he said.
But learning on the job was not always an enjoyable experience for Choong.
“It is hard to enjoy breathing in all the dust. Being at the site was certainly not easy at all.
“But I had a lot of help and support from relatives who were involved in the renovation and they were always there to advise me,” he said.
It took about six months to obtain all the necessary licences and renovation works took up to about a year.
Choong also decided to take on a new team to manage Grid 9 to give the business a fresh spin.
He thinks it is important that the management team is not made up of hospitality-industry stalwarts so that Grid 9 does not become stuck with the same hotel marketing conventions.
Lee, who also worked as a consultant in PWC, joined Choong about half a year ago.
Lee currently looks into Grid 9’s business development.
“It is a very different experience. Previously, we were well-dressed corporate people and we had to carry ourselves in a certain way.
“Now, we are addressing issues with contractors and suppliers and we have to be more stern,” Lee laughs.
Teoh, who previously worked in the food and beverage industry, came in to help with the operations of Grid 9.
All in, the cost of setting up Grid 9 was about RM2.3mil and Choong estimates that the hotel should take about two to four years to break even.
Although Grid 9 is new to the market, 28-year-old Choong is already thinking of bringing the concept to other tourist locations like Penang and Malacca. For now, he is hoping to open another hotel in Kuala Lumpur.
Choong believes that Grid 9 is unique enough to do well here.
“Grid 9 may be a passion for us, but at the end of the day, it is a business and we need to be profitable as a business.
“We have to adapt to the changes in the market and this is something we believe in.
“And we believe it will change the market as well,” he said.
From left to right: Grid 9’s gastropub will be opened in May to cater to guests’ hunger pangs; Individual pods are cleverly designed for privacy. Mattresses at Grid 9 are sponsored by Dunlopillo; Rooms at Grid 9 are brightly lit.
While people generally tend to view budget hotels as dodgy, Choong explained that Grid 9’s concept is no such thing.
In fact, Grid 9 has partnered with reputable businesses such as Dulux, Dunlopillo and Doof to enhance the Grid 9 experience.
“Our partners have been very patient with us and they have never thought of backing out.
“Our most recent partnership was with KL nightspot Zouk. We do hope to partner with more companies that have the same target audience,” he said.
Establishing a new concept and brand in the market can be quite a challenge, but fortunately Choong has found other players in the industry to be helpful and willing to share experiences and tips for survival.
One of key factor in building a brand, said Choong, is to deliver on promises.
“It is the only way to sustain the business.
“After all, we do not want to be a one-hit wonder,” he said.
But the hospitality industry is a competitive one and should Grid 9 prove to be a popular concept, Choong and his team could see new competition streaming in fast.
While Choong welcomes healthy competition, he noted that Grid 9 has a first-mover advantage and the brand should have a sizeable market share by the time the concept matures here.

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